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Shared Ownership is perfect for those looking to move onto and up the property ladder, but don’t have the funds to buy a home outright. This government-backed scheme allows you to buy a share in your dream home, paying rent on the remaining amount. It’s seen as a much more flexible method of home ownership, but the requirements can be confusing and eligible groups are often unaware of their options. So, is Shared Ownership just for first-time buyers?
No! Shared Ownership is not just for first-time buyers. The scheme is mainly targeted at this group but is also available to those who do not currently own a home. For example, you may want to downsize your family home, or your relationship may have broken down. Shared Ownership can be helpful for a range of aspiring homeowners, not just those purchasing for the first time.
Read on to find out more about the eligibility criteria for the Shared Ownership scheme and how it could benefit you.
In short, Shared Ownership allows you to buy the part of a home you can afford while paying rent on the remaining amount to a housing association or landlord. This means that you need less savings to become a homeowner, as you’ll only pay a deposit and mortgage payments on the share you’re buying. Over time, you can ‘staircase’ up to owning 100% of your home by buying more shares.
If you want to learn more about the process of buying a home through Shared Ownership, head to our information hub or contact a member of our team today.
Shared Ownership has a set list of criteria that you must meet to be eligible to buy a home through the scheme.
Both of the following must be true:
One of the following must also be true:
Shared Ownership was designed to make it easier to buy a home on the open market. This means it’s suitable for anyone who currently does not own a home and cannot afford the upfront costs associated with purchasing one. The scheme is available to a number of groups who fall into the criteria but is primarily focused on first-time buyers. Here’s why:
The Shared Ownership scheme targets those buying a home for the first time, as it recognises the financial struggles many face trying to get onto the property ladder. One of the biggest challenges that first-time buyers face is saving for the deposit needed to buy a house in full. They most likely won’t have equity from a previous home to put towards this amount.
Shared Ownership reduces the need to save so much. You only pay a deposit, usually between 5% and 10%, on the share you’re going to buy. This makes homeownership much more accessible, allowing you to reach this saving goal sooner than a full deposit.
The idea of Shared Ownership is to create a path to full home ownership. ‘Staircasing’ allows buyers to slowly increase their stake in the property and build equity over time. This is perfect for first-time buyers as it builds long-term stability for those who would have otherwise remained in the rental market.
Whilst the Shared Ownership scheme is targeted towards first-time buyers, it is available to anyone who meets the eligibility criteria. As with any assistance scheme, it’s important to make sure that Shared Ownership is right for you, your budget, and your lifestyle.
The team at Plumlife have put together a comprehensive guide to help you through the process, with our useful blog: “Who Is Shared Ownership For?”
Affordable housing schemes, like Shared Ownership, are designed to be accessible to those who need them most. In some cases, there are groups that are given priority over eligible properties, but this can vary depending on your area and local authority.
In most cases, Shared Ownership homes are available on a first come, first served basis, provided applicants meet the eligibility criteria.
There are some exceptions to this, however, for qualifying Armed Forces personnel and certain rural locations. Members of the military are given priority, with this extending to serving members and those discharged within the last two years in the case of under-supply.
Some developments may also require applicants to provide proof of living or working locally. This requirement might be stipulated in the local authority’s planning permissions and is set by the council, not the housing association.
Important Note: Certain housing associations may have their own individual eligibility criteria, so make sure you check their requirements too.
Whether you’re a first-time buyer or are returning to the property market, the expert team at Plumlife are on hand to help you find the right home for you, your family and your budget. We’ve been making home ownership easier for over 20 years, specialising in a number of affordable homeownership schemes, including Shared Ownership.
We’re here for you, no matter what you need. Get in touch with our friendly team today and get started on the next chapter of your life.
There are a number of costs involved in the process of buying a home through the Shared Ownership scheme, including:
Yes, you can sell your Shared Ownership property at any time. The process you’ll go through depends on the amount of shares you own. If you own 100% of the home, you can sell as usual on the open market. Otherwise, you’ll have to give your housing association first refusal and let the nomination period pass, and then you can list on the open market. Be sure to check your contract for more specific information on your particular development.
If you’re looking to decorate or refurbish the interior of your home, you can do this without the permission of your landlord. This covers a number of changes, from repainting walls to replacing a kitchen or bathroom.
You may, however, need written permission from your landlord if you’d like to make structural changes to your house. Each property will be different, so you’ll need to check with your landlord before starting any construction.
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